What Is the Gig Economy?

The gig economy is a labor market in which temporary positions, or "gigs," are common, and lots of people choose to freelance instead of being employees, or freelance as a complemetary source of revenue. The gig economy has been facilitated by technology platforms that match service seekers with gig workers in real time. Service seekers can be individuals or companies. Upwork, TaskRabbit, UberLyft and Capango are the major players facilitating the gig economy.

Which Part of Retail Participates in the Gig Economy?

Retailers, Brands, Merchandisers and Experiential Marketing companies all participate in the gig economy. They all employ full-time, part-time and "on-demand" staff.

What Will It Change in the Retail Industry?

On-demand workers provide a lot of flexibility to the retail industry, and an increasing number of people are interested in taking on "gigs." The gig economy could be a game changer for the retail industry if employers can excel at making their "gigs" attractive, easy to apply for, and easy to execute via mobile devices.

Why are Recruiters Challenged when Charged to Fill "Gigs"?

Even though the demand for "gigs" is growing, recruiting qualified workers can be challenging for two reasons.

  1. The gig economy is a competitive environment. Employers need to generate awareness around their gig offers, and they need to make the application and on-boarding process easy, fast, and seamless.
  2. Due to the nature of "gigs" (one-off, freelance engagements), costs of hiring and onboarding can quickly skyrocket if workers don't complete any work, or complete a very limited amount of work, leading to a low workforce ROI.

 

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